Frederick F. Muntz

Statement of

Frederick F. Muntz

Vice President

on Behalf of

InVision Technologies, Inc.

Before the

Subcommittee on Aviation

Committee on Transportation and Infrastructure

U.S. House of Representatives

October 11, 2001

Chairman Mica, Ranking Member Lipinski and members of the House Transportation and Infrastructure Subcommittee on Aviation, thank you for inviting InVision to participate in today’s hearing on the Deployment and Use of Security Technology.

It is with heavy heart that I am here today representing some 350 InVision employees in the wake of the terror attacks of September 11. All of us at InVision are committed to proving the aviation community the finest products and services available to combat terror. In specific, my testimony will examine a critical vulnerability, which can and must be secured; the introduction of explosive devices through checked baggage.

Overview

As far back as 1987, scientists at a small San Francisco Bay Area company named Imatron were working with advanced Computed Axial Tomography (CAT) scan technology to determine its applicability in the detection of explosives. While CAT scans were used successfully in medical applications for more than a decade the early pioneers in Explosives Detection Systems (EDS) looked to one aspect of CAT scan data that did not live up to its promise in medicine.

The use of Computed Tomography (CT) numbers, (or Hounsfield numbers as originally coined to honor the inventor of CAT scan technology), to qualify density characteristics of the measured material proved a key element in automatically identifying explosive materials. Using the cross sectional images, sophisticated computer algorithms were able to analyze the data and determine the presence of material that could potentially be an explosive or part of an explosive device

Then, much like on Tuesday, September 11th, terror struck. A terrorist bomb boarded through checked baggage downed Pan Am Flight 103. This tragedy pointed out a vulnerability that must be secured. The ensuing Aviation Security Act of 1990 required the Federal Aviation Administration (FAA) to identify, develop and certify a technology capable of detecting all classes of explosives that pose a threat to civil aviation. The FAA and the National Academy of Science reviewed technologies and the requirements for an EDS and determined that Computed Tomography (CT) was a proven technology capable of meeting or exceeding the strict and challenging certification standards.

To meet the challenge of aviation security and the application of CT technology, InVision Technologies Inc. was formed in September 1990. As a small, private, commercial company, InVision relied on the investment of its corporate founders and FAA grants to develop the first EDS certified in 1994. In total, InVision has spent some $50 million of private equity funds to produce both the technology and corporate infrastructure necessary to thwart the threat of the introduction of explosives through checked baggage. Along with public funds administered by the FAA and commercial sales to foreign airports and airlines, the foundation of a formidable national resource took shape.

Initially, the FAA funded the procurement of five CTX 5000 SP units to install in a cooperative demonstration program with US domestic airlines. This program proved very successful. In fact, the first demonstration unit installed in 1995 was done so over night, behind the United Airlines ticket counter in the International Terminal, at the San Francisco airport with no disruption in service. Now, the same airport boasts a brand new international terminal outfitted with CTX systems that assure Computer Assisted Passenger Prescreening System (CAPPS) selected bags are scanned with FAA certified EDS. The original demonstration unit, now more than six years old, has been redeployed and put into operation at another United station.

Following the initial demonstration program, the FAA, airlines, airports and other related stakeholders established the Baseline Working Group (BWG). The BWG was charged to determine the most effective, comprehensive deployment of counter terror technologies available, to secure the largest and most dynamic aviation system in the world. In the most profound of coincidences, the very day the BWG was established, tragedy struck again in the explosion of TWA 800.

In the early days following the TWA 800 tragedy, it appeared almost certain that only a terrorist bomb could have created such a massive explosion and complete destruction. Regardless of the eventual determination of cause, TWA 800 served as a wake up call to America that much work needed to be done to secure the traveling public. While the federal reaction to this tragedy fell short of an absolute mandate to use EDS equipment, a plan utilizing CAPPS and InVision’s CTX systems was initially funded as recommended, by the Vice Presidential Commission on Aviation Safety and Security. Christmas Eve 1996 marked the day that the viability of InVision as a national resource materialized in the form of a multi-year contract with the FAA to provide dozens of CTX systems to domestic airlines.

As part of the initial deployment order from the FAA, InVision was required to move into expanded facilities and demonstrate a capability to manufacture in significant quantities. But, from 1996 to Tuesday, September 11, our national resolve to secure checked baggage was chipped away by competing needs and sporadic funding. In that period, InVision invested heavily in research and development to make its products and services more airline friendly, operationally suitable and cost effective. However this was done at significant financial peril to the company. From time to time the company had to downsize and make other corporate adjustments, as the promise of a sustained requirement for its manufactured products waned along with the memory of the TWA 800 wake up call. At the same time, criminals were planning and experimenting with ways to attack our great country. While faced with uncertainty, Invision continued to make progress. To name but a few benchmarks of success, InVision:

 Provided for the installation of more than 135 CTX systems domestically and over 250 worldwide;  Reduced the cost of annual maintenance contracts by more than 40%;  Reduced the number of alarms that required operator examination by almost one half;  Introduced product upgrades funded solely by InVision;  Produced the worlds fastest EDS in the CTX 9000DSi that features the largest aperture available to facilitate integration into baggage handling systems;  Self funded and introduced a cost reduced, smaller product in the CTX 2500 most applicable to smaller airports and stations with reduced throughput requirements;  And most recently, InVision produced a certified version of software able to detect threat quantities that are only 75% the size of the original certification requirement, in keeping with the latest intelligence information.

Now, without question, the landscape, the mission and our national response have changed forever. The fear of aviation terrorism that struck Pan Am 103 and was brought into focus by TWA 800 is now escalated by the events of September 11th and the declaration of outright war. The importance of InVision’s role as a national resource in the fight against terrorism has never been more palpable. While InVision’s role in this war via the CTX family of products is essentially the security of checked baggage and only a part of the overall response required, it is a critical role and one that remains to be completed.

InVision as a national resource has earned its place in our country’s arsenal to protect the flying public. The corporate infrastructure established, as required by the 1996 Vice Presidential Commission, is essentially intact. InVision continues to make at risk purchases of long lead items and manufactures finished products in good faith and in anticipation that our government and the aviation community will continue to support a comprehensive response to terrorism. InVision stands ready to serve. It is now time for our country to stabilize this critical national resource, address the checked baggage vulnerability once and for all and provide for an accelerated, sustained rate of CTX installations in our nation’s airports.

The Technology

CTX systems use an x-ray energy source and multiple detector arrays to create cross sectional images. Conventional x-ray systems take a single view of a bag. CTX systems take 512 images in 380 degrees around a bag and reconstruct slices of variable thickness. While the technology is complex, the advantage is simple.

In conventional x-ray, each item in a bag obstructs the view of the other items within the bag. The ability to analyze the contents by computer, or visualize by the human eye is obscured due to the clutter of multiple objects. But, when the data is acquired and presented in a CT Slice format, software algorithms can accurately determine the presence of explosive material. The CT detection algorithms clear more than 70% of all bags automatically with no operator intervention. If the system detects a potentially suspect material, an operator is presented a series of images and threat resolution tools to determine if an explosive device is present.

InVision is an experienced developer and manufacturer of CT based products. In order to address different operational requirements, InVision offers 3 distinct CTX products.

CTX Family of Products

CTX 9000DSi

Certified at 542bags/ hour Integrated applications 1 meter wide conveyor CTX 5500DS

Certified at 384 bags/hour Stand alone or integrated Widely deployed

CTX 2500

Certified at 128 bags/hour Low cost, small footprint Smaller airports

Erosion of EDS Funding

The stated objective Commission on Aviation Safety and Security to expeditiously deploy EDS in our nation’s airports was initially funded at a level of $142 Million and recommending $100 Million per year thereafter. That amount diminished quickly as other technologies that address needs other than checked baggage sought and received funding. As worthy as they may have been, no increase in the overall funding was implemented. Consequently the amount of funds available for EDS procurement were reduced.

Recently, regardless of company experience, product capability, reliability and maintainability, a requirement to “pair” EDS procurement contracts was initiated. The investment made, infrastructure developed and progress realized by InVision was ignored and in fact jeopardized because it is a smaller company without the political visibility of others incapable of competing on a traditional commercial basis. Prior to InVision’s initial deployment contract in 1996, InVision supplied multiple international customers including Israel, England and Belgium thereby proving broad product acceptance. By the time InVision received the 1996 order, InVision had some 20 systems operating around the world, in addition to the 5 demonstration systems successfully deployed with domestic carriers. While it is imperative to respond to the threat of explosives in checked baggage, it is also essential that proven systems be deployed that are reliable, effective and well supported in order to combat the threat.

The erosion in EDS funding and a compromised commitment to secure checked baggage is illustrated in the charts below. Operating a public company in this environment is challenging. InVision and indeed the traveling public are fortunate that the “know how” and corporate capability remain as viable asset of the company assure its readiness to respond to our nation’s emergency.

Product Shipments*

80 International

d 60 USA e p p i h

S 40 s t i n

0 1995 1996 1997 1998 1999 2000 *2001 shipments trending even lower. Orders for units to be shipped in the current calendar quarter will not be ordered until Fiscal ’02 funds are approved.

s International t i 60 n USA u (

g 40 o l k c a 20 B 0 1995 1996 1997 1998 1999 2000

Product Backlog* *Absence of backlog requires InVision to manufacture “at risk” in anticipation of FAA orders and in contrast to normal 6 month lead time for delivery.

Summary

 Certified EDS scanning with InVision CTX products is the solution to the checked baggage threat.

 FAA plan prior to 9-11-01, to implement 100% EDS scanning between 2009 and 2017, must be accelerated.

 InVision’s current product offering provides a technical response with sufficient flexibility to satisfy a broad range of operational requirements.

 InVision products should be ordered to provide a sustained rate of production in excess of 10 units per month for a period no less than 18 to 24 months

 FAA or appropriate governing agency should task InVision and others to develop even faster, more advanced CT based product configurations.

Attached is a document provided in response to multiple government inquiries about InVision’s ability to ramp production. InVision Technology’s Response to National Security Emergency

 InVision is capable of rapid ramp up to significant manufacturing levels in excess of 10 systems per month.

 As a result of TWA 800 and initial deployment order in 1996, InVision was required to move into facilities and implement processes to manufacture in excess of 10 systems per month.

 InVision can manufacture significantly more than 10 systems per month if necessary by adding additional shifts, implementing a production schedule 24 hours a day, 7 days a week.

 In 1996 and the years following, InVision demonstrated a capability to increase production rate 10 fold while implementing a Quality program and achieving ISO certification.

 InVision is preparing to purchase long lead items to achieve ramp up within 6 months after receipt of order.

 InVision’s current production plan, established prior to 9-11-01 provides for 10 systems per quarter allocated to the FAA. Efforts will be made to accelerate the response once directed to do so.

 InVision has contracts in place with the FAA for each of its 3 products, CTX 9000DSi, CTX 5500 DS and the CTX 2500 inclusive of volume incentive pricing.

 In order to ramp up effectively, a sustained manufacturing requirement is necessary for a period of 18 to 24 months that will allow for installation planning and site development.

 InVision has demonstrated world wide, the infrastructure and know how to manufacture, install and service.  InVision is a proven national resource with as many as 250 units operating worldwide.